WASHINGTON - President Barack Obama and Senate Democratic leaders, propelled by news of the biggest one-month job losses in 35 years, hammered out a deal yesterday evening that clears the way for Senate approval of a huge economic stimulus plan.
Senators said the legislation, which is a cornerstone of Obama's efforts to revive the economy, would carry a price tag of about $780 billion under the compromise deal, though the final figure was unclear.
The measure is expected to cost less than the $819 billion bill approved by the House and far less than the bill as amended on the Senate floor, which had grown to more than $930 billion.
The bill had stalled amid partisan differences, with most Republicans saying it carried unnecessary spending and not enough in tax cuts.
But over the course of several days, a small group of senators from both parties, working with White House Chief of Staff Rahm Emanuel, negotiated the compromise, trimming the bill in hopes of winning support from a handful of moderate Republicans.
Senate Democratic leaders said they believe they will have enough support to pass the legislation, though it was not immediately clear when a vote would be held. Republicans might delay the vote until early next week, but there was little doubt about the outcome.
"For the first time, there's light at the end of the tunnel," said New York Democratic Sen. Charles E. Schumer, predicting that Congress would send the bill to the White House, as promised, by the end of next week.
When the compromise was announced yesterday evening to a closed meeting of Senate Democrats, it was greeted with applause, and Democrats emerged saying that the party had rallied behind it.
The White House applauded as well.
"On the day when we learned 3.6 million people have lost their jobs since this recession began, we are pleased the process is moving forward," said Obama spokesman Robert Gibbs.
Under the deal, the cost of the bill would be lowered by scaling back tax cuts in the legislation by $25 billion. In addition, lawmakers trimmed $85 billion in spending for items that they believed did not belong in a stimulus package because they did not spur economic growth, like $870 million for combating pandemic flu.
Democrats said some of the areas trimmed were muscle, not fat, and hoped it might be restored in the final bill. Funding for school construction took a big hit, and aid to states was reportedly cut from $79 billion to $39 billion.
